MONROVIA, LIBERIA – The Ministry of Finance and Development Planning (MFDP) has issued a stern warning to government spending entities, urging them to carefully manage their budgets due to ongoing resource constraints. In a memo issued on Thursday, February 20, 2025, Finance Minister Augustine Kpehe Ngafuan emphasized the critical need for fiscal responsibility as the country grapples with a challenging financial environment.
The MFDP’s message, addressed to Ministries, Agencies, and Commissions, reminds government institutions of the reality of resource scarcity and stresses that they must make informed decisions about their expenditures. “You must not lose sight of the scarcity of resources,” the Ministry stated. “Prioritize your priorities and make sure every dollar spent aligns with the country’s financial constraints.”
Minister Ngafuan highlighted the importance of adhering to approved budgets, warning that there would be no additional financial support if entities exhausted their allocated funds too quickly. “Your budget is set for the entire year, and it should not be treated as though it covers only six months or a single quarter,” he cautioned, emphasizing that any overages would not be supplemented by additional government funds.
With Liberia’s Fiscal Year 2025 budget set at US$880.7 million, the Ministry also reminded institutions that the budget remains a projection until actual revenues are collected. Despite a 19.2% increase from the previous year’s budget, the total funding remains far below the more than US$2 billion requested by government entities. The gap between the requested amounts and the available budget underscores the difficulty the government faces in meeting all financial demands.
The Ministry of Finance acknowledged the influx of requests for additional funds from various government entities, citing rising costs and new priorities not accounted for in the original budget. While some unforeseen expenses are expected, the Ministry stated that the first recourse should be to utilize internal resources from the entities’ existing allocations rather than seeking additional government funds.
A small contingency reserve of US$3.26 million has been set aside for unforeseen needs, but the Ministry made it clear that this fund is insufficient to address the growing number of legitimate financial demands. “This small reserve will hardly meet the full scope of unforeseen spending pressures that may emerge during the year,” the Ministry explained.
The MFDP closed the memo by reiterating the need for cooperation and discipline from all spending entities. It reminded them that the success of the country’s budget and its ability to navigate fiscal challenges depends on responsible financial management and alignment with the Ministry’s guidelines.
